debtconsolidationconnection.com
501 (c)(3) non-profit Organization
Free Consultation
Student loan forgiveness, debt consolidation may help those saddled with financial problems
By Edith Barlow on Jun 16th, 2010
When trying to pay for their education, some people may have to take out student loans, although these debts may spell trouble later.
In a recent posting on her website, financial expert Liz Pulliam Weston received a letter from a reader who amassed $175,000 in private and federal student loans. The concerned consumer wants to be able to buy a home, but doesn't know how to do so with so much debt.
Pulliam Weston noted that the person will probably have to wait to buy their first home. Regarding the debt, there are a few options they may be able to pursue, including eventually reaching a point where the government will forgive the debt.
"People who work in public service jobs for 10 years can have the remaining balance forgiven, while those who work in other jobs can get forgiveness after 25 years," Pulliam Weston wrote.
Regardless, Pulliam Weston said that the reader should concentrate on the private student debt, as this generally carries a higher rate.
Another option that people may consider is debt consolidation, which may lead to lower interest rates. However, public and private debts need to be treated separately when doing so.
More Debt Consolidation News
